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tv   Headline News  RT  July 4, 2013 2:00pm-3:01pm EDT

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e.u. flags after the bolivian president's jet is diverted grounded and searched an act by a latin american leaders a kidnapping and a humiliation for the entire continent. does seem to do the bidding of the united states of america which infringes on national sovereignty and does leave the country to be a colony of greater political power. over europe being nothing short of washington's puppet. also this hour changing of the guard here square celebrates as the former egyptian leaders fall from grace and arrested as the standoff between the islamists and the clashes in results and new clashes.
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right now you can see live pictures from tahrir square in the egyptian capital where the opponents of morsi have gathered to celebrate the islamist president's ousting. international news and comment online on screen twenty four hours a day this is. latin american countries a sea then over the eaves decision to ground and reportedly search a jet carrying the bolivian president over rumors whistleblower edward snowden was on board almost the entire continents running to believe his cause. the details things are not looking so good for the diplomats european diplomats accredited in latin american countries some of them may actually be expelled in particular those working in believe that will be more clear after the emergency summit of they want
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us to organization which unites most of the latin american countries which will be held on thursday some statements will be pretty. there but following this nightmare flight of ever more alice through europe last night we've seen an unprecedented solidarity from all the american countries on the matter they've all been very critical of what happened with the believing president now the president of argentina cristina the commissioner said that this was the humiliation of the entire south american continent president of venezuela nicolas maduro said this was a dangerous disproportionate and unacceptable aggression a joint statement coming from the colombian government stated that the airspace denial is an act of aggression and last but not least the venezuelan foreign minister described it this airspace denial as fascist well this kind of criticism has been coming from all levels in level latin america but clearly the most offended side here where the bolivians with the foreign minister describing this as equating in this to. a kidnapping attempt.
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is an unprecedented situation this goes against international conventions and treaties this goes against international law and all the rules that have been established over a long period of time this shows disrespect of the country's independence by. the countries involved in hijacking president morales is clean and making a mistake they think that others steal attack invade territories wage wars impose embargoes and go back on their own word just like they do the current policy of the usa and their allies in nato aims at ensuring their role in security at the expense of somebody else's. we've also received a reaction coming from the russian foreign ministry which was also far from have happy about how things pan out for the bolivian president so you suck or somebody out there you are at peace with that it is the machine due to the failure of european states to give permission to the aircraft of the bolivian president to fly
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through their airspace and is forced landing of this special. in vienna the following should be noted the activities of france spain and portugal could hardly be regarded as friendly towards we live near as well as russia from where president mirrors was traveling after his visit to moscow moreover the refusal to grant the right to fly the aircraft could have endangered the safety of the passengers including the head of a sovereign state or europe received the lion's share of criticism for their actions in regards to the bolivian president where some latin american officials saying that despite europe is criticizing what edward snowden has actually revealed still that acted as a colony of washington but of course the united states have also been criticized on this matter because of reports that they may have had a hand in this particular incident in fact the united states never made secret that they contacted countries in europe about snowden possibly traveling through their
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territory and that she should be handed over to the united states authorities for charges and later trial so this story is definitely far from over we are anticipating this summit and believe that the emergency summit of all of us who are and what steps will be taking next and as long as edward snowden reportedly remains at moscow's sheremetyevo airport will be definitely seeing more creative twists and turns to this saga commenting on europe's role in the scandal robert oulds the chair of the bruges group policy think tank in london says states haven't abandoned their colonial past when it comes to their relations with the u.s. . it's an infringement of self and see and and and abuse and of course you need to respect the independence of other nations and they're there via the opinion does seem to do the bidding of the united states of america which shows that use not really independent in terms of its own foreign policy european union follows what america does it really does seem to accept american foreign policy goals rightly or
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wrongly but that's not an independent voice any binds other countries within the european union under the common foreign and security policy so really it does mean that the cherished principle of a nation state having its own foreign policy is undermined and that then does leave the country to be a colony of a greater political power which of course want contrary to democratic legitimacy. the french interior minister has said if edward snowden applied for diplomatic shelter in his country there's almost no chance he would get it this following the whistle blows revelations of the blatant u.s. spying on its european allies which sparked a wave of fury in the bloc including paris. explains what we see is actually a curious evolution of france's position over america's spying activity from an extreme outrage to an even more extreme tolerance and even support we all remember
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that france has become furious after it was revealed that america's intelligence services had been more natori in high ranking french and european union officials even abroad and also at home and then the angry at france's president has demanded washington to stop spine immediately and has even threatened to reconsider economic partnership with america and delay the talks over an ambitious project with america over the world's largest free trade zone america france and european countries have been working on for years to work. we cannot fix this kind of behavior between partners and allies but we ask that this immediately stop because they can be no negotiations or transactions in all areas until we have obtained these guarantees for from. all of the european union or six but what we saw next has actually indicated a radical change in the country's position the european union countries including
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france have. all over the free trade zone should go on then later france has not allowed believe this president's jad to enter its aspirates because an undesirable person adverse norden could also be on the board of the same plane and that allegedly following america's request to do so why we see this change in a position of france people here on the ground are saying that that's been an act of populism for from french president francois hollande his ratings are among the loyalists in the history of his presidency and of course he could plan to gain some points by saying exactly what his people what his electorate wanted him to say that only proves that france has not been able to go beyond words in its accusations of america's behavior and will not actually openly spoil its relations with washington and actually instead of gaining some popularity here on the ground a french president has been the opposite anger at the public people say they are
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shamed with this it pop received from their leader. he's electret the university says the french president inconsistency has left the whole country red faced the socialist government of all the world to compromise. of friends know who our country appears in the eyes of the world as a circle and also country which does not state a moment today to which this is a disgrace because we are not reduce the economic power we were political and diplomatic very small we don't have the courage to adopt. well all this is that goes over three years our interests. let's now hear from international affairs and honest pepe escobar paid much of the blame over this diverted to plane control
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the sea now lies with the e.u. so presumably washington must be pretty happy about that. this is exactly like a vice president al gore got to see only near a remarkably put it it was period kidnappings but the puppets we're the most important part of the equation exact don't forget that what you what twenty four wow four hours before what happened what i list there were outraged in serious it were being spied of foreign in a b. in frankfurt and out of a nato headquarters in mons outside of belgium twenty four hours later they did what they did against it wore out the leader of a small so some american nations you know a peach of a person he is he is he's immense greek so they want to do it all right why that
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sudden change in sentiment then. now it's look not we have to co-parent so you know now everybody knows now about the famous joe biden sold call probably personating joe pashley in goodfellas. korea president of ecuador you saw our out of focus her changed his tune radically after that now it's different because the whole thing backfired what the americans try to do with it what i'll explain what that but it's that france four to go spain immediately specially the austrians are more or less in the middle there are conflicting forces the osce and say that even what i was also rise to search of the plane in the believe in say this never happened and now the united south american i guess the you were asked and i guess this ridiculous but benteke role of the european puppets so this opens for snowden a possible alternative asylum here in south america it could be venezuela just like
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president might look at the old r t he could be the leader just like president what i was told r t as well or he could be of course thirty shouldn and more countries in that sort let's try to find a collective solution to solve this just a moment when what if they were that angry surely they one of those countries would offer a pretty safe and quick passage for snowden so in some ways isn't this just an overreaction from these latin american countries just an excuse to have a go at the u.s. no no it no it's not an overreaction look people in south america they know one of two scenes about the former colonial power spain so you know they know how arrogant the french can be and i heard this from diplomats from all sides dealing with europe be and it's usually nice you will see he is at peace this is the lies and mission of the french all the time and they always know better so you know. or are
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extremely sensitive and if you look at this i guess for leader coverage it's a small so some american nations it's a slight that gets the first president in south america d c thirty eight zero is very seriously oh ok and if it's that serious and they're talking about taking it to the u.n. but will let a t.v. anything when they get the results here. but. they already logical went look look look at it it will secretary-general that we have at that moment bulky need in iceland so these are google he said it was wrong what he did this case doesn't even it doesn't even nordic shargel united nations so you cannot trust even the united nations as well so i would suggest. you know south american got to get your act together and so this those in case for the benefit of the world are so. great to talk to you on this thank you very much indeed for joining us live here on our terrace while the leaks about the n.s.a.
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surveillance sparked massive outrage towards the barmah administration not only in its major targets on europe but among the people of the u.s. to american citizens of taking to the streets all across the country in a nationwide protest against the snooping event was organized by a new online movement called restore the fourth man that calls on the government to respect the fourth amendment in the bill of rights which protect citizens from unreasonable searches and seizures protests are taking place in all major cities at the moment well arty's marina for keeping an eye on those demonstrations and you can log on to her twitter feed for the latest updates and pictures from the event. over the bolivian plane grounded as part of the u.s. hunt for snowden will washington be held to account you can get online to breaking the set of regular programming r.t. dot com where i mean martin assesses just where the unfounded suspicion could lead . i guess my question is who that hold is obama think it is only after
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a week of declaring that he wouldn't scramble jets for a twenty nine year old hacker obama forces down the plane of a foreign head of state that's ludicrous and humiliating just imagine if another country demanded air force one to land mid flight based on an on founded suspicion as centrally the us is saying we can do whatever the hell we want even if that means outright disrespecting leaders of nations there will be consequences for this kind of disregard for the world stage and if you think that it's completely insane to join me and let's break the set. it looks like it will never seen anything like that. these are live pictures from his square in coming up after the break as egypt celebrates the end of president morsy as rule we look at this with change of power
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could bring to the country and its people many of whom are now celebrating the demise of morsi in carter's top his square as a site live pictures here on tape. this is not a surprise to me that we've got problems in guantanamo during a time of budget cuts we spend one hundred and fifty million dollars each year to imprison one hundred sixty six people dead more as become a symbol all around the world for an america that while believe what. he.
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says. continues here in r t a day after a military coup toppled the egyptian president the country's new leaders are showing little mercy to mohammed morsi and those close to him with top judge adly mansour having been sworn in as interim leader the general prosecutors had the
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islam is muslim brotherhood supremes and his deputy arrested but these for a change of power has triggered renewed clashes on the streets at the moment these are live pictures from a celebrator e square where there is no evidence of any violence taking place at the moment as protesters who were against morsi are now celebrating his downfall ati's paula slit has more in this. well as you see behind me the crowds continue to gather here in taft a square the numbers have increased quite dramatically in the last few hours as is customary at this time of the day and as we've seen for the past week or so what we've noticed in the last few hours is military helicopters flying overhead now they have left behind them a smoke trail of the colors of the egyptian flag all of this excitement here even though in the film egypt's jim president morsi has been ousted from power it's almost as if the cop wants to give him a message that he's gone for good now this comes as
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a deeply divided egypt time to find its feet there has been the arrest of the supremes diet and his deputy some three hundred a racist warrants have been issued by the military on muslim brotherhood leaders in mississippi we know for instance that they started rounding up and detaining them and now it appears as if the general prosecutor who is responsible for ordering these muslim brotherhood over it is the same man that was removed by morsy off to the two thousand and eleven revolution he was part of the. for me gyptian president hosni mubarak's team one of the candidates that is being bandied at least being favored for the position of prime minister is mohamed al by ready for many international atomic energy agency chief and he has indicated that this is a position that he would like to take up now with me i have mohammed salim who is a right to have a political activist and
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a blogger now you are one of the protesters down there in task here why do you say that this is not a military coup i'm saying it's not a military coup because the military would not have moved an inch c.c. would not have moved all it wasn't for the millions of approval went down to the streets they went onto the streets after exhausting every single way of showing that what's happening is a good theater should we have tried a position we have to take the protests we got attacked by muslim by the k but how do we know that the military will leave when they supposed to leave they have no choice in the store and they don't want to repeat what happened a first year and a half a complete destroyed their reputation relations downstairs completely and utterly believe that they got the military to move and that the minute you say out and so far even in the agreement the military has created their enjoyment it has moved itself completely from the process but what have you protesters achieved i mean two years on we're back with started here back on the streets of to fear sometimes you have a corrective measure you know what you wanted was a constitution followed by elections but the end of having was elections followed
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by a constitution that wasn't even approved by the majority of the population i'm pretty sure it's a good warning for any president to come along to not think about doing it because there should be or any of them or even trying to pull the theocracy moderate the possible or try to call on sorry this is a good thing people are celebrating people are still jubilant you have to understand it's been a very bad year people cannot believe that they're actually got through the course what it said he has been a very bad year and what we can tell you is that there are growing concerns despite what some people think that they could be violence they was a shooting not far. from our t.v. office here in cairo it was also clashes earlier in the day in front of cairo university. live in tahrir square in cairo while egypt's crisis may have a tough impact on its neighbors which have already been through destructive civil war correspondent from the drizzle imposed her keen on has told us that countries such as israel can't make long term plans in such
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a hazardous environment again it's we just have to have a little patience and wait and see how things play out i think i'll take some time i think in general you can say a couple things about how israel looks at these types of events israel is adverse to chaos is the verse to unpredictability and i think what this does is this the sense the whole region into a certain degree of chaos in a certain degree of predictability which is uncomfortable for israel israel like stability it likes predictability even if those it's dealing with are not necessarily favorable toward it however like to know how they're going to take syrian president bashar assad for instance very tough relationship with israel over the years but israel kind of knew what he would do knew how we would react now in syria there's complete chaos in egypt also now. it's tough it's tough for israeli policymakers to look at this and define what to do. to catch up with the rapidly evolving revolution in egypt and follow its events online go to our website r.t.
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don't calm down you'll find a full time line along with analysis and images from the very heart of. the prospects for the alternative cyber currency known as bitcoin have brightened with some serious financial plans prepared to open it to investment the winklevoss twins best known for suing facebook's founder mark zuckerberg over claims he stole their social network idea planning to float a bit coin trust but even though the multi-millionaires an hour going along with bitcoin the rebel currency still has a strong grasp over those drawn to its anti establishment charm and. explains. it's happy hour in midtown manhattan dozens of bars are filled with after work crowds but here at ever. is where you'll find the big apple's expanding community of because investors think . it's the first new york city establishment to accept the digital currency
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a monetary system free from government and bank control as well as credit card processing fees i would rather everyone pay with a coin than i would with a credit card twenty three year old charlie shrem is co owner of ever and founder of big instant one of the first big queen payment processing companies when i first came into the space. i was the only person new york city had heard even heard of the coin i was last out of every d.c. firm in the city and now fast forward to two years there are so many startups that i started meet ups we're all friends of the each other there's kind of like a culture there's more furthermore if you're good are you built a culture of young financially savvy new yorkers determined to build an unregulated financial system i'll buy a big corner or hold on i'm going to big josh rossi hosts a weekly big queen meeting in union square where people can buy and sell the digital coins gathering data tracks even hedge fund and high frequency traders you
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can finally opt out of a system that you don't agree with like bernanke you can keep printing as much money as he wants to corn users are in effect here holding declines it only makes our big points worth more dollars it's a natural hedge against inflation in a city that serves as the global headquarters for most of the world's largest banks the big quite economy is slowly being embraced by respectable businesses domino's pizza the howard johnson hotel chain and a new york based limo service now accept the digital currency fair to say that new yorkers are able to eat sleep and commute without spending a dollar online popular sites like reddit and ok cupid except to be queen cars furniture and tech gadgets have been put up for sale on the trading website craigslist with doll. or digital coins equally accepted and for the anti prism privacy defenders the big b. will soon have purchased power with these burner phones which feature disposable
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numbers many economists remain skeptical of the long term stability of a currency that lacks backing from a single government but not a problem for bit coin believers' if they were complete with the monetary system if they felt it was fair then they wouldn't be looking for an option like the point so you see already the loss of confidence the loss of commitment it's a sign of where this society is going the u.s. government though isn't too happy with the coins popularity it recently shut down our virtual exchange system for the currency claiming it was a money laundering platform i think we've had one hundred years now of what the u.s. government can do when it gets to manipulate a currency and a lot of people are kind of tired of that and they want to experiment in a space where you can't manipulate a currency just what would that even mean for money and i think that's why a lot of people are really interested in the space growing enthusiasm for an invisible currency presented to rival the printed greenback marina porton i.r.t.
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new york one news in half an hour coming up now the latest edition of our money program prime interest from washington. as a person who lives in russia i get asked very often why automatic console fat well are americans actually fat or is this just a myth from some hater countries the centers for disease control have declared obesity to be a disease that's a twenty point nine percent of adult americans are obese and that is an all time high people blame the sedentary lifestyle as the cause yes if you were out all day at work and then all evening after driving home sure doesn't help your waistline but problems can have multiple causes and the authors of the book rich food poor food believe it could be tied to eight foods that are allowed in america but are
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banned in many other countries across the globe some of these chemicals and techniques and foods that are banned by some other countries are a less strong which is in many snack products which lower scale worries but kills your body's ability to absorb minerals brought native flour which saves tons of time for the baker but beats up your internal organs and of course our good old friend synthetic growth hormones which are in livestock which have been linked to cancer big problems really have simple solutions you can run around and exercise as much as you like but if you're being pumped full of these chemicals that are illegal in much of the world well your chances of fitting into that bathing suit are ironically slim but that's just my opinion. good afternoon and welcome to prime interest i'm bob english here in washington d.c. here is a story we're telling today happy birthday runs in frank to three years ago
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president obama signed into law a twenty three hundred page bill that was supposed to fix our. financial woes ex goldeneye gary gensler was given regulatory control as head of the sea up to see over the lion's share of the seven hundred trillion dollars derivatives industry and he has to do is lee went to task on creating thousands of new regulations but he forgot something he was supposed to stay on top of the futures industry which is why this sea up p.c. was created in the first place that see it stands for commodities so his old boss at goldman sachs that would be john corazon who are going to profile today he blew up in the global and he threw the entire futures industry into disarray and mr gensler did nothing for four days then promptly recused himself from the entire matter we're going to talk about this with james could tulis president of the commodity customer coalition in just a bit well gensler is on the way out ever had after having lost
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a major battle over to reduce regulation with his fellow commissioners in just nine days a key provision that governs the ability of u.s. banks like j.p. morgan to skirt the dodd frank it will expire if the exemption is not renewed really ends and derivatives could be thrown into disarray meanwhile the latest jobs report beat expectations today good news right wrong at least for mr market because that means the fed might be getting out of the money printing business sooner than expected it's a topsy turvy world we're going to lay it all out for you today as we deliver what's in your prime interest.
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almost two years after he tanked m.f. global john corazon returns to the spotlight in two thousand and eleven the former new jersey senator's firm dipped in. customer accounts in attempts to cover losses on european sovereign debt trades a scheme with uncanny similarities to our favorite cookie playing juvenile delinquent. if you had access to a car like this would you take it back right away. neither would i. well corazon had access to the m.f. global car borrowing customer money for short periods of time usually returning it by day and that is until and until the car crashed and dealer i mean corazon he got away scot free now earlier i spoke with james cook tulis co-founder of the commodity customer coalition about the new c f t c suit against john kors and i first asked him if it's possible we will see criminal charges as well. legal opinion he definitely committed crimes in m.f.
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global and i think it's encouraging to see this. as a step and now. done just about all they could do on the civil side but now it's up to the you know jane to do their job and as we know unfortunately we have an attorney general. i don't think really the country's best interest of our and hasn't a very good job prosecuting financial. you know is involved. in orders. but really it's now on her shoulder. to try to act like he's not completely corrupt and then either a perjury case which is ongoing i think it's easily one of all or more difficult. well let's talk about your lunch hour let's talk about the possible perjury case now john corazon was in front of congress he basically said i didn't know what was
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going on do there is new evidence out in the civil case that kind of contradicts that so what is that evidence and how could it be used against him. sure i mean there her personally i thought there was enough evidence it could have referred very trusty gettin releases or or. about a year ago. or shows the corps i was intimately involved in the cash management activities of the firm he knew. how summer money was at risk for the bankruptcy when he went before congress he said well i simply don't simply don't know where the money is and we know from those that see if you see complaint which cites numerous recorded phone calls he knew damn well where the money went. and also the trustees report showed that j.p. morgan's chief risk officer very super zero call corps on three days before the bankruptcy to say hey we think customer money is at risk here j.p.
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morgan was the custodian a customer i mean they were going on a same count that basically m.f. global sent two hundred million dollars i believe over to j.p. morgan and then j.p. morgan want wanted what's called a comfort letter that said this was not customer money and the person handling that was laurie ferber she's an ex goldman sachs employee who at the time was the general counsel of and that's global and she kind of hemmed and hawed over the weekend as i understand about that letter and it was never signed i'm just wondering why are we seeing any charges against her. i think that's a good question and quite frankly i think from day one the fervor and steenkamp. oh and right level have really gotten in explicable asses i believe they were all paid by louis freeh who is the trustee for the trevor eleven eleven k. and three cited pressuring client privilege and so now under oath already we're
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investigating some documents on their behalf even though these these two players were right in the middle of this whole. fraud and. high level executives let's talk about them basically because of the bankruptcy structure maybe you can talk about this a little the foxes' were allowed to rule the henhouse in those early days i mean can you talk about the problems with chapter eleven versus seven sure a chapter eleven is known as a reorganization type of bankruptcy where a company is expected to emerge after restructuring it's like we just saw a.m.r. go through chapter eleven when ironically the same judge. all glenna new york but they want to chapter eleven to renegotiate their contract with their pilots and their union haulers and things like that i'm sure you have
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a legitimate business here that has some kind of chance of going on but that was not the case with m.f. global. exactly and the day before the bankruptcy laurie ferber who is m.f. global's general counsel sent e-mails to the f.t.c. m a c s d c indicating that there was a significant shortfall in the customer segregated accounts yet the next day november first in bankruptcy court and the locals bankruptcy council cans them on ad and went before the judge and misrepresented saying that there were no. he specifically said there was no shortfall in the broker dealer and then if the f.t.c. attorney stood up shortly after that nobody corrected this and they were headlines out that day that said the money that there's no shortfall and this was one of the events that led the futures industry into a shortfall after it was discovered that there was a shortfall so i mean you started out with the customer commodity customer coalition you helped found it to deal with the fact that there was nobody looking
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out for the futures industry at that time and what was it like in those early days i mean it was actually. i'm a licensed attorney but i've never practiced a day of all my life ever taken a class on bankruptcy so as a time i'm a thirty year old hedge fund manager with no experience whatsoever but due to this complete boy a customer half ago i was put in this position where. i was essentially directly representing ten thousand customers and indirectly representing the entire class of mearns and having to go up against the morgan and louis freeh who was the former director and i think if you're going to actually credit cancel one of your credit cards after you started this whole movement. yeah it was funny i was on the n.b.c. outlining all the conflicts of interest j.p. morgan had in the bankruptcy being that they were the clearing agent from what was
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proper and they were their biggest lender. they were the custodian of accounts were on and they were able to go into m.f. global stock and in the one metals exchange on some opaque process in the u.k. they were also able to carry sovereign debt trade. because i'm glad i was on the dollar store and they got a really nice deal out of i didn't say you know they made like six percent. so and i was pretty good trade for them again with no oversight. so i almost say and i'm walking home to buy my girlfriend flowers to my credit card klein next day i got a letter in the mail saying that they wish all my my checking accounts all personally and for our edge. and that my holding company get them out of the bank and i rent a car had been terminated and retaliation i guess the message is don't mess with
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jamie dimon and he's feeling a little bit more heat now these days let's talk about gary gensler he was the head of this the f.t.c. at the time he still is and he's another ex goldman sachs guy an inspector general report came out and said that it was not necessary for him to recuse himself and what when he was at the helm of the c.s.c. i think one of the problems was there was a lack of leadership and the inspector general came out and they said he doesn't have to recuse themselves is gary gensler. is he that the epitome of the regulator who has not done his job. i mean look i'm no gambler fan just to play devil's advocate for one second i'm sure he was kind of damned if he was damned if you know damned well he was all there given his relationship with i feel that if you never use them then we'd be talking about how or if i got special treatment because again lerner was still involved right so i mean he even have
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a great option there but the timing of his refusal is a bit earlier and that he waited about four days after the bankruptcy guys are accused and this was after the basically see f.t.c. gave the handling of the bankruptcy over. which is security insurance company. rather than same as the f.t.c. should be involved despite the fact that there were only about one hundred million and the security council have all versus about six point four billion and. right i think there are maybe three hundred accounts total in the securities accounts forty thousand stooges accounts and let's talk about that we've already talked about the problem with the bankruptcy structure of the holdings company but there was another company and that was m.f. global and that was the brokerage firm where all the customer money was and why did we see a securities industry protection association resolution of what was really just a futures brokerage firm. yeah i mean the system basically argued because we're
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unsure and part of this we should handle the bankruptcy and the law isn't one hundred percent clear as to whether the city at the sea would have had to step aside or not but they did essentially step aside. and that made things very difficult at the early going so we had given this instilled a trust there and he had handled lehman what you've built about one hundred sixty billion in fees for him for handling lehmann and then goes in and all and they don't very good job transferring. margin positions basically like a day or two after the bankruptcy but then given that said we're only going to give customers sixty percent of their money back. nine months after the bankrupt. state suing because we're going to tackle more and that's global john corazon shenanigans with the president of the co-founder of the commodity customer coalition james catullus benny perry and boring profiles
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a don himself john honey i blew up the futures industry corps i finally i will duel with r t producer rachel curtis yes over the role of uncle sam in health care and housing. wealthy british scientists some time to explain the. market why not. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune into kinds a report on our. right to see.
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first rate. and i think you're. on our reporters' twitter. and instagram. to be in the know. on.
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well we are back with more of my interview with james catalyst i asked him what needs to be done to increase confidence in the futures industry here's what he said . to do. one justice. would be done to help. c.n.n. him behind bars would show that even if you're
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a friend of the president if you break the law you go to jail we haven't seen that yet on the regulatory side there have been a. nation with more coalitions currently work with several members of congress including the house and senate act in many ways as part of the body exchange act reauthorization what changes are you trying to put forward. are big change the. the way customer funds are and all the bankruptcy if there happens to be a shortfall in the customer accounts like we saw them at all which was an unprecedented event but it draws it begs the question you know if this was an unprecedented event can we actually fix the bankruptcy code is what you're doing going to be able to overcome the changes that were made back in two thousand and five and can we finally see protection for the future as customers. yeah i mean changing the bankruptcy code is very difficult. basically the kind of one precedent that's against commodity summers comes from a. broken train and i have
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a ninety nine i am aware of. a case of a shortfall in customer property customers get treated general creditors from from a balance that ruling was later. after a settlement our customers all their money back on was cited. in this case so what we're trying to do is create a situation subordination where if there's a customer shortfall all of our lenders would then have to wait until customers. get their money back in order for them to go and that would result in much quicker return afonso than what we saw and i don't know more soon. that was my interview with the president and co-founder of the commodity customer coalition james cook to us. i i i. i
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i. one of the most miserable experiences can be he said she said tips is one person's word against another and with little evidence and evil doers can walk free however i think some business is extremely important and sometimes these tips can ruin a well let's talk about m.f. global let's profile john kors on the missing customer funds are is still a contentious issue brokerage firms are required by law to have customers finds in segregated accounts to safeguard cost of our assets however it during a liquidity crisis at m.f. global over eight high. a million dollars of customer's funds were transferred from a customer account to a broker dealer account and then c.e.o.
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john corazon denied having any knowledge of this when questioned by congress. i was stunned when i was told sunday october thirtieth two thousand and eleven the name of could not in this global could not for many hundreds of millions of dollars more simply do not know where the money is. but not everyone is buying his story u.s. representative michael grimm is calling on the attorney general to bring criminal perjury charges against him for m.f. global this is based on evidence filed in a c f t c complaint that corazon spoke to an employee by a tell of telephone to strategize how they could use customer segregated files to clear m.f. global's trades but this isn't the first time john corps has tried to conceal his affair as governor of new jersey he spent approximately one hundred twenty seven thousand dollars of taxpayer funds to keep e-mails between him and his girlfriend
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car like cats secret carly cats it was the president of an employee and show a communications labor union and this union negotiated a labor deal with. potential conflicts of interest during these negotiations were brought up against and ended up being ruled that of course i did not break the governor's code of conduct but he did manage to keep the majority of these e-mails sealed mind you a carly katz was married to someone else when they met john corazon that was married. for thirty three years they had three children joanne was quoted saying it john did what his family down and i'll probably new jersey down to regarding his affairs with the c.w.a. president it's another act. concealment from corazon was when he ran for u.s. senate in one nine hundred ninety nine he refused to release his income tax return records claiming a confidentiality agreement with goldman sachs he was the former head of goldman
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and it was speculated that he had a politically and popular investments but nothing prevented him from putting his investments and a blind trust course on was indoctrinated into the goldman i claim and one nine hundred seventy five when he was hired as a broker trader over two decades he worked his way up to chairman and c.e.o. he's responsible for converting the firm from private partnership to a publicly traded corporation he made about three hundred million dollars on the partnership conversion better the firm went public coast c.e.o. henry paulson forced him out and this is when he went through the revolving door and turned politics he was a democrat from new jersey in the u.s. senate for five years he then ran for governor of new jersey after losing his real act as governor he had up his ally from his golden days do you see flowers who helped him into his position as chairman and c.e.o. of m.f.
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global powers own a temp of percent stake and and was actively engaged in the last minute negotiations of until m.f. global declared bankruptcy the missing customer funds have pushed junk or zine and to another my word against his argument did he know or did he not know that is the question that could put corps i'm behind bars but now we know a little bit more about the profile of john quinn resigned. welcome to the daily door joining me is rachel courteous our to producer thank you so much glad to be here about all right we've got
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a couple stories we're going to talk about today this one is from the w.s.j. healthy consumers could see insurance rates double or even triple when they look for individual cover under the federal health law later this year and while the premiums paid by sicker people are set to become more affordable and this is according to the w.s.j. again the exchanges the centerpiece of president barack obama's health care law looks likely to offer few if any of the policies that healthy people can now buy so according to the journal's analysis top prices look to be within reach for many people who previously based sky high premiums because of chronic illnesses or couldn't buy insurance so what's going to go on here well here's what i think i think first of all for people who are say feeling like they're going to be paying higher rates before previously for those people who were not covered by health insurance at all because of chronic conditions it wasn't that they weren't getting medical care it was that they were going to the e.r. at the last possible moment when they needed it and the government was obviously paying you know we certainly have a convoluted health care structure because of the laws and this gets back to this
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gets back to the one nine hundred fifty s. and sixty's there were improper incentives and when it's kind of like the income tax people don't realize how much they pay in income tax because it's automatically deducted people don't realize when they take a job how much of their money that they could be getting otherwise is going to health care so people really don't have a choice in the system that even was before the only service is going to do that's much better if the people who have chronic conditions yeah i think that people have chronic conditions who are now able to get preventive care is actually going to lower prices in general also the individual mandate because pay for all this people are already paying for it to say that the government isn't already paying for it is ridiculous what the government in our the government pays for ok but the government cannot continue to pay for it the government is learning how the health care act rightists even if we can't continue even if health care costs are going to rise civilizing rise at a lesser rate than they would have us. otherwise so listen i'm not going to sit here and defend the intricacies of obamacare i do think that that's a losing argument but what i am going to say is that the government does have an
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obligation to provide people with health care and if they are providing people with preventive health care and healthier choices from the get go that means that their costs are going to go down later on ok the problem is i stand by my assertion this cannot continue forever especially when interest rates rise but i'm going to move on to the next subject and this next story it's next story is from forbes if you feel like you already paid for the financial crisis once or twice you might have that same old feeling so with failing institutions lost investments foreclosed properties and taxpayer funded bailouts taxpayers got it every which way and now they could be getting it again citigroup says it will pay nine hundred sixty eight million dollars to fannie mae to resolve craniums that breach representations and more is on three point seven million residential mortgages and this is now three point seven million dollars three point seven million mortgages they really must stop here and they're paying one hundred sixty years in the u.s. up here i mean buybacks have been an issue for banks ever since two thousand and nine and i think that having a settlement like this is good news because it it gets rid of some of the confusion
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banks have been putting aside their quarterly earnings significant money to have to deal with these buybacks so that their child with the federal reserve is subsidizing these very beggs i think we've seen a zombie bank structure especially with the too big to fail banks and we're in a much worse situation than we would have been had they been allowed to fail in the first place and face these seriously i mean i think that with fannie and freddie in particular there's a huge question of what we're going to do with them right the dot frank bill didn't mention these government sponsored enterprises even though it looks like we might even get a new entity so why why bother getting rid of for good friday if we're just going to do the same thing over it if it's it would be fannie and freddie by another name and i think that there's a really good it's most we i mean it would perhaps but i think that the question here is is mainly you know freddie was brought in to the equation much later on because the risk exactly because fannie was getting so big and so powerful i think that the main thing the government can do here. is make that implicit guarantee explicit guess what we've got to wrap this up rachel thank you so much for joining me if you want to weigh in on today's show be sure to like us on facebook at
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facebook dot com slash prime interest and don't forget you can follow rachel on twitter at sirius underscore rachel and you can follow me on english p.i. rachel thank you so much for joining me today glad to be here. it was a kafkaesque day here a prime interest we learned there's no honor for old new jersey senators who rob peter to pay j.p. morgan and ferber ferber we got your number and much like the alamo we will not forget dodd frank turns three and is going through some growing pains at least we know that they're in the terrible twos and kafka himself turns one hundred thirty which would actually be a decent sentence length for john the done corps i would that the deal deal jay
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finally get its act together and get serious about these bankers guys and gals well it's us independence day tomorrow and we're going to celebrate independence we once had and yearn for once more and the fred thanks for watching and make sure to come back tomorrow and from everyone here a prime interest of a great night. download
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flags but after the bolivian president's jet is diverted grounded and searched and latin american leaders kidnapping and humiliation. consonant. does seem to do the bidding of the united states of america which infringes on national. country to be a colony of a greater power. being nothing short of washington's puppet. changing of the guard celebrates as the former egyptian leaders fall from grace and . the standoff between the islamists and the results in new clashes. right now you can see.